Washington Enacts Law Restructuring Renewable Energy Taxation

The Washington Governor signed a law to encourage renewable energy development, by establishing a new tax structure that exempts renewable energy facilities from property taxes, while imposing state and local renewable energy excise taxes on qualified solar, wind, and battery storage systems with at least 10 megawatts of capacity. The law includes setting specific tax rates for solar energy facilities ($968/megawatt state tax, $2,905/megawatt local tax) and wind energy facilities ($1,200/megawatt state tax, $3,600/megawatt local tax), while removing biomass and geothermal facilities from certain property tax provisions. The law takes effect Jan. 1, 2028. [H.B. 1960, enacted 04/01/26]

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